In our informative ongoing orientation, the seven Japanese volunteers and myself received a great overview on the natural environment of Bhutan. Bhutan is a very beautful and rugged country. There are three general eco-zones including subtropical in the south, alpine forest in the middle, and cold alpine tundra in the north in the high Himalayas. One hundred percent of the country is covered by mountains and 72.4% is covered by forests. Fresh water is in abundant supply, which includes about 2500 mountain lakes. Currently, in Bhutan, there are over 300 medicinal plants, 50 species of rhododendrons, more than 40 species of orchids, and over 770 species of birds. Various publications on Bhutan's environment can be found on the web site of the Bhutan's National Environment Commission, here: http://www.nec.gov.bt/publications/publication.html
According to the Bhutan National Environment Commission, see: http://www.nec.gov.bt/ there is a strong commitment to keeping 60% of Bhutan in forest cover permanently. Major environmental issues, though, facing Bhutan include global climate change, waste management, and watershed management.
One of the four pillars of Bhutan's major national policy--Gross National Happiness--is environmental conservation and sustainability. The authority to meet environmental issues includes Article 5 of Bhutan's Constitution--http://www.constitution.bt/ and Bhutan 2020: A Vision for Peace, Prosperity and Happiness from the Bhutan Gross National Happiness Commission--, see: http://unpan1.un.org/intradoc/groups/public/documents/APCITY/UNPAN005249.pdf. Currently, these middle path environmental policies seek to balance enconomic development with environmental protection.
A very good video on the philosophy and practice by Bhutan to protect the environment can be viewed here: http://www.youtube.com/watch?v=KcAjE--rQQE